In the next decade, annual private-sector employee health and dental benefit costs in Canada will approach $25 billion. Approximately 40% of this is related to drug costs with the balance attributable to dental and a wide array of extended health care claims. These costs have risen dramatically over the past number of years and are predicted to continue to rise at an alarming rate. Drug cost escalation alone is trending at 16 to 20% per annum and, at that rate, costs would double in less than 5 years. A new paradigm for providing benefits is needed.